DOE Announces $15.5 Billion in Funding and Loans to Retrofit Automotive Manufacturing Facilities to Support the Transition to Electric Vehicles

On August 31, 2023, DOE announced $15.5 billion to retool existing automotive manufacturing factories while supporting high-paying union jobs and a just transition to electric vehicles (EVs). $2 billion in funding is allocated to Domestic Manufacturing Conversion Grants, appropriated by IRA section 50143, and $10 billion is available in loan authority under the Advanced Technology Vehicles Manufacturing Loan Program, $3 billion of which was appropriated by IRA section 50142. In addition, $3.5 billion in grant funding from the Bipartisan Infrastructure Law, announced in a Notice of Intent, will support the creation of new, retrofitted, and expanded domestic commercial facilities for battery materials, battery components, and cell manufacturing.

The $2 billion in Domestic Manufacturing Conversion grants will expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components while supporting commercial assembly facilities seeking to convert or retrofit. The goal is to support the just transition to electrified transportation through working with communities and facilities with longer histories in automotive manufacturing, with preference given to projects committing to pay high wages for production workers and maintaining collective bargaining agreements. Projects selected must contribute to the Justice40 Initiative by making sure every community benefits from the clean energy transition.

The Advanced Technology Vehicles Manufacturing Loan (ATVM) Program leverages loan authority for automotive manufacturing conversion projects so they can retain high-quality jobs in communities currently hosting manufacturing facilities. ATVM supports manufacturing for eligible vehicles or qualifying components including projects that build new facilities; reequip, modernize, or expand existing facilities; and/or engineer domestic integration for eligible vehicle or component manufacturing. The program also seeks to increase high-quality jobs in communities currently hosting manufacturing facilities through attracting and retaining a qualified workforce by providing high wages and benefits such as workplace rights. Applicants are encouraged to engage directly with DOE’s LPO for free, no-commitment consultations before formally applying. Consultations can be requested by contacting atvmloan@hq.doe.gov. Applications must be consistent with existing ATVM authorities that require laborers and mechanics to be paid at least at prevailing wages and to abide by strong labor standards. Applications also are subject to existing ATVM regulations that establish criteria to include projects’ economic development impact, geographic location, and more.

Manufacturers can apply to receive assistance via financial grants through DOE’s Office of Manufacturing and Energy Supply Chains (MESC) or preferable debt financing through DOE’s Loan Program Office. Concept papers are due October 2, 2023, while full applications are due December 7, 2023.